. The easiest and most common method to divide stock options is to have the employee spouse who owns the option offset the agreed-upon value of the option with another asset. Understanding and Calculating Alimony in Arizona. each spouse's age and physical and emotional health. These rights are often given by employers to certain employees as an incentive to work for the company. Our Arizona divorce attorneys have over 100 years of combined experience successfully representing clients in divorce cases in Arizona. The court determines the value of unexercised stock options and decides upon an equitable division. Dividing the Property. Most of the assets that are acquired by either party during a marriage are automatically considered marital property. Divorce attorneys may know family law, but they typically know little about tax law - especially when it comes to annuities. The Arizona Court of Appeals in a memorandum decision in the case of Jimenez vs. Mesa, AZ 85202. Kingsberry and Mr. Before submitting a petition for divorce, one party must have resided in Arizona for a minimum of 90 days. Stock options can be valuable and they’re subject to equitable distribution as a marital asset. Learn when you might get—or pay—alimony in an Arizona divorce, how long it may last, and how to calculate the amount under the state’s spousal maintenance guidelines. At the end of your divorce case, a judge will divide your property and debt by signing a Final Decree of Divorce (also referred to as Final Decree). Martin $46,688. a. It is a court order that divides pension payments between spouses. The value of the stocks will not become. papers filed in the divorce case. Generally, a divorce has three types of property:Let’s talk about the effect of stock options on child support in Arizona. App. S. In these states, all of a married couple's property is classified as either community or separate property. Example: Susan and Steve have two significant assets: $100,000 equity in their home ($50,000 each) and the value of their business - $350,000 ($175,000 each). 2017). As a legal document, the property settlement agreement will be used as a contract. You cannot get a divorce in Family Court. If you need information about the effect of an increase in the value of sole and separate business stock in a divorce in Arizona, you should seriously consider contacting the attorneys at Hildebrand Law, PC. That is where your case will be filed. An increase in the value of that separate property during the marriage is also separate property. Call us at (602) 698-5520 to schedule an initial consultation. . As addressed through Brebaugh v Deane, 211 Ariz. 3d 599 (Ariz. Ct. Arizona is a community property state upholding the division of marital assets and obligations between divorcing spouses. In Arizona, as a community property state, any 401(k) funds accumulated during the marriage are subject to equal division between spouses. Whereas, if the accumulated paid time off is not reimbursable, it is the separate property of the spouse who earned it and it should not be divided in a divorce. In most states, couples can handle asset division by mutual agreement. The IRS allows divorcing spouses to each keep the same cost basis and holding period for an investment they already own. The trial court awarded them to the mate as his. There are dozens of issues that need to be settled in a divorce, but dividing up finances is understandably a priority. 4) Selling your house after divorce may be more difficult due to a lack of cooperation from a spouse due to hurt feelings stemming from the divorce litigation. Description. However, this can change if a spouse acquired. (770) 425-5573. In this case, the employee spouse needs to act as a fiduciary for the ex-spouse well after the divorce is finalized. Community property covers buildings, land, money in all its varied forms (cash, investments, bank accounts, and so on) stock options, vehicles, jewelry,. However, any money earned or assets acquired before marriage by a spouse is the separate property of that spouse. When a couple owns a complex stock portfolio that may include everything from individual stocks, they brought into the marriage to 401(k) accounts to vesting options with their employer, then the question of how stocks are. Choosing a Valuation Date for a Business in a Divorce in Arizona. Get the right guidance with an attorney by your side. At the end of a successful settlement, our clients pay only a fraction of their original loan balance. Under Oklahoma law, "marital property" means all property (including real estate, personal property, and other assets) the spouses jointly acquired during the marriage, even if title to the property is only in one spouse's name. This can be great if you’re facing foreclosure, repossession, or wage garnishment, but it’s not so good for your divorce case. The seminal Michigan divorce case of Byington vs. 50. A QDRO allows a former spouse to receive a predefined amount of their spouse's retirement plan assets. This means that any properties and other assets acquired during the marriage are split 50/50 during the divorce. § 25-318, that allows a judge to order the sale of the property as part of a divorce decree. The Arizona Court of Appeals in the case of Schickner v. However, if the spouse’s efforts during. If you need help dividing your retirement benefits because you are divorcing your spouse, call DeShon Laraye Pullen. Whether your business is subject to property division depends on what kind of property it is. A Family Law Judge will be assigned to conduct proceedings and enter a divorce decree in AZ. In those cases, a couple of options exist for you. Under this contract, the formerly married parties divide their property post-divorce. In other cases, however, the judge may decide to award one spouse a greater percentage of the marital. Czarnecki retired from the military that same year and received retirement benefits. CHAPTER 7. Judges will presume that any property acquired during the marriage is due to the spouses' joint efforts, unless one. Rio Salado Pkwy. A Qualified Domestic Relation Order or QDRO is used to divide non-governmental ERISA pensions. For example, a QDRO might pay out 50% of the account's value that has grown during the. Landman, 212 P. Sometimes employees. It’ll stop the divorce in its tracks until the bankruptcy case is over. By addressing the issue of IRAs as part of a divorce, it is possible to avoid surprise transfers to an ex-spouse after a death. A judge will divide a divorcing couple’s property and debts, unless the couple is able to reach a settlement agreement. HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE; HOW IS. To start your dissolution or divorce, you must complete a “Petition for Dissolution of Marriage” and file it with the court. The difference between these reports is the level of discovery and data that is included, as well as the methods and approaches used to reach the Conclusion of Value or the Calculated Value. If you and your soon to be ex are involved in a dispute over the family dog, cat, horse or any. In a community property state, marital property becomes community property, which is jointly owned by both spouses. A stock option is a legal right to purchase one share of stock for a specific price (the strike price), regardless of the price at which the stock is actually trading. At the time of the post-decree action for division, Wife would be entitled to one half of the value of the previously undivided stock options since those stock options existed at the time of the final decree, even though without value, the options would have been community property since they were earned during marriage, and Arizona Court of Appeals Rules on Reopening a Case to Divide Assets Not Divided in a Divorce Decree In the case of Ringear v. Because stock options are an extremely complicated topic when it comes to division in divorce actions, this article is just an overview of the basics. App. S. read more. Jeff Bezos is splitting up with his wife—which means they have an estimated $137 billion in assets to divvy up. The 1962 amendment to A. Jurek , 124 Ariz. , Suite 206 Tempe, Arizona 85281. papers filed in the divorce case. Arizona case law provides formulas for determining the percentage of community interest in the options under each scenario. Generally, filing fees range from $200 to $250, with additional costs for court-related services. C. Stock Options and Divorce in Arizona The Arizona Court of Appeals issued a decision regarding whether stock options that have not vested before the petition of dissolution is served. A divorce decree was issued dissolving the parties’ marriage, dividing their marital assets, and awarding Wife spousal maintenance of $600 for 120 months. 2010), the Arizona Court of Appeals discussed whether a divorce court can divide the equity in a marital home solely on the basis of each spouse’s contribution of separate property to its purchase. Arizona Revised Statute Section 25-318 (B) allows a judge to consider the taxes that will become due upon the sale of an asset, such as capital gains taxes on a home. Market Value. Additionally, Arizona’s divorce law. Czarnecki filed for a divorce from Mr. You are able to divide unvested stock units in a divorce pursuant to a case that’s called a Powell and Powell case, sort of a coverture fraction where you get 50% of stock that is vested and a smaller percentage of unvested stock. This can typically be done in person at the courthouse or by mail. Millions and millions of dollars of wealth is unnecessarily destroyed each year when a divorce leads to an annuity contract being divided as part of the divorce settlement. It’s not necessarily a 50-50 split, though. In the case of In Re Marriage of Inboden, 225 P. Therefore, the community lien on Leisure lane was correctly calculated to be $68,588. While it’s yours in name, you can’t transfer or sell it until a certain amount of time has passed. Receiving unvested stock from a company isn’t like getting a bonus paycheck. However,. Option 1: The employee spouse can keep the RSUs and buy out the other spouse’s interest based on the current value. In this way, stock options are very different from retirement benefits, such as 40l (k) plans. The divorce judge in the Carroll case assigned a large portion of the community debt to the husband. Mrs. Van Loan 569 P. So, generally speaking, any stock options granted to the employee spouse before the couple married or. In the case of Howell v. 1095 W. Muchesko. 3d 842 (Ariz. John Howell and Sandra Howell divorced in 1991. Jared Spinelli, a divorce attorney and Partner at Rubin and. However, state laws vary. Before we discuss the division of Employee Stock Options, a basic understanding of how they function is important. Call us today at (480)305-8300 or reach out to us through. each party's age, health, and station in life. The trusted lawyers at Goldman Law are ready to help. This piece aims to provide insight into the difficulties discovering stock options and the ways to value and divide them if discovered. 3) The recent housing market is an advantage to sellers–you may be able to get a higher price for your home now than you would after the divorce is final. Divorcing spouses will most likely benefit from hiring a real estate agent to manage the selling process and offer advice on key. Division of Military Retirement in Arizona. Getting a full disclosure from your former spouse about each employment benefit is immensely important. Decision. . Arizona law requires a fair (or “equitable”) distribution of divorcing spouses’ community assets, and, in most cases, this will mean a 50-50 split. Identify Property. It awards half of that amount to the nonemployee spouse in the form of equivalent property. The options are distributed by something called a Callahan Trust, which is a constructive trust. Taxes During MarriageGen. Howell No CV 15-0030-PR (Filed December 2, 2015), the Arizona Supreme Court discussed what happens when part of a veteran’s retirement pay is awarded to the spouse in a divorce decree before the veteran waives a part of it for disability benefits. Alternative Dispute Resolution in Arizona is simply a legal term meaning mediation. A marriage breakdown is emotionally draining, and it can be especially so when it comes to the financial picture. HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE; HOW IS. 1. In this case, generally, whoever paid for the property or received it as a gift owns it. In fact, there are significant differences between traditional divorces and high-asset divorces. Since 1997, each spouse may exclude up to $250,000 (or $500,000 as a couple) from any capital gains tax if the spouses have lived in the house for any two of the last five years. The Arizona Divorce Handbook, by attorney Scott David Stewart, has an entire chapter devoted to property division in non-military pension division. To view a further explanation of Arizona case law regarding goodwill in Arizona, click here. Consider Capital Gains Taxes on the Sale of a House in an Arizona Divorce. An experienced lender can help with analyzing the situation and determining what can be done to fix the credit and raise the scores. Muchesko and Mr. If you are going through a divorce or legal separation in Arizona it is important for you to familiarize yourself with the laws that apply to the division of community property and how separate property is defined and treated in Arizona. Dividing business profits during a divorce in Arizona can be a very complicated issue. Usually, the term "uncontested divorce" means that a couple has already reached a complete settlement agreement before starting the legal divorce process. Q. So, if one spouse gets the house with $20,000 of equity in it, the other spouse would. 596, 606 P. 5 However, a mere expectation to receive money is not divided in a divorce. by gift or inheritance, or. Email Us To have one of our experienced attorneys contact you, please fill out our confidential form below. . You can get a portion of your spouse s stock options during a divorce proceeding. Equalization Payments. The Law Office of Karen S. ”. . Tucson Location:Distributing Stock Options During an Arizona Divorce. After the final divorce trial, the court awarded the house to the husband subject to the husband paying the wife 50% of the equity in the home, if any. EXCLUDING CAPITAL GAINS. The keys to dividing stock options in a Texas divorce. All filing fees are payable to the Clerk of the Superior Court when you file your documents. Judges hearing divorce and other family law cases prefer for the parties to settle their case and avoid litigating their cases in a final divorce or family law trial. Earnings of either spouse during a marriage are community property in Arizona. Ct. Each case is different, the calculations are complex and care must be taken when considering any model or formula to divide assets. Ct. the courts generally seek to divide debt equitably in a divorce case. There were two blocks of stock options in dispute (i. Step 2 - How to serve the first court papers. survivor election and military retirement in an arizona divorce; deferred military retirement in an arizona divorce; division of deferred retirement option plans in an arizona divorce; claims of waste in an arizona divorce; dividing accounts receivable in a divorce in arizona; the importance of title searches on the marital home during a divorce Call us today at (480)305-8300 or reach out to us through our appointment scheduling form to schedule your personalized consultation and turn your Arizona community property case around today. Leisure Lane had an appreciation of $145,100. e. Stock plans rarely allow options to be transferred to a third party, so it is unlikely you can give your spouse one-half of the options. This effectively means that any debt that is a divorce-related debt will be non-dischargeable if you file a Chapter 7 Bankruptcy. Melissa loves to write - she always has a book project in the works. Evans owned half of the “French Café and Cocktail Lounge” business. Arizona Divorce: Dividing Business Profits. Divorce proceedings in Virginia occur through several steps: separation, filing, property division, child custody and child support, and spousal support or alimony. 3d 1208 (Ariz. In community property states, each spouse is liable for 50% of debt incurred during marriage by either spouse. Rio Salado Pkwy. One example of a case where the assets were divided equitably but not equally is Toth v. You can open all your accounts here. The court awarded assets totaling $184,843 to wife and $215,211 to the husband. Navarrete & Schwartz, P. Learn about property division and other issues in an Ohio divorce at our resource section on Ohio Divorce & Family Law. Specifically, the Arizona Supreme Court in the Johnson v. mployee stock option division in divorce is a confusing and complex area fraught with tax complications and imprecise valuation methods. The amount each spouse receives of the pension depends upon: How much of the pension was earned by the employee spouse before marriage or after service of the. If the couple cannot decide on a way to divide the debt, the couple will need to go to court, and the judge will determine how the property should be divided. VALUATION OF STOCK HOLDINGS AND DEBT IN AN. Call our team at 303-695-0200 to learn more about your assets and Colorado’s equitable division laws today. The separate property of a spouse can be turned into community property in Arizona. A marriage breakdown is emotionally draining, and it can be especially so when it comes to the financial picture. This includes credit card debt, mortgage debt, student loan debt, and any other debts that were incurred during the marriage. 2d 712 (1953), the Arizona Supreme Court considered the question of whether Arizona courts would enforce an agreement made by an unmarried, cohabiting couple to pool their earnings and share equally in all assets gained during their time together. 122, 494A. Arizona Divorce Rules and Property Division. Debt is also subject to division in an Arizona divorce. Your divorce attorney will closely review all stock options to ascertain your rights. Phoenix Property Division Attorney. Call For Consultation (480)305-8300. Turn right onto E 6th Ave and. During a divorce in Arizona, the equity is often relied upon as a bank account in the property settlement, and to start your new life. 24/7 Call (602) 254-8880Where do I go to for a divorce? The Supreme Court of the State of New York is the only court that handles divorce cases, and a Supreme Court judge is the only person who can legally grant a divorce. Michael I. The parties ask the court to make the final decisions concerning property division, spousal support and matters regarding the children. Defining Marital Property and Separate Property. A Court Cannot Simply Divide Community Property Based on a Percentage of Each Spouse’s Contributions of Separate Property. If you were married when you started the business and the stock vests after separation, then it will be divided according to the time rule described. 00. . Contact a Skilled Divorce Lawyer. How Are Business Assets Divided In Divorce? Generally, marital business assets are to be divided equally in a divorce. If you have been married for a lengthy period of time and have accumulated substantial assets, it can be even more complex. agreements between the spouses concerning property division. Retirement Assets. The experienced Arizona divorce attorneys at Hildebrand Law, PC have over 100 years of combined experience calculating the division of pension benefits in a divorce in Arizona. In the dissolution of marriage in Arizona, all marital property and debt must be distributed between spouses. The Arizona Court of Appeals in a memorandum decision in the case of Jimenez vs. They can also agree to continue to own property together if they think they'll be able to cooperate as co-owners. W. Foster, the husband filed an appeal of the trial court’s division of guns in an Arizona divorce. Landers is president and founder of Bedrock Divorce Advisors and Bedrock Wealth Management. The law also states that equitable usually means equal—but a judge who believes that a precisely equal division would be unfair can divide the property in a different proportion after considering the following factors: length of the marriage. For example, if you have stock options that have not vested during the marriage, they may not be included in the marital pot. As Arizona is one of nine community property states in the United States, anything earned (or debt incurred) during the marriage is community property and, thus, subject to “equitable” distribution in a divorce. 7,300 of the stock options were granted after the complaint for divorce was filed. You need to get an attorney. The first thing to consider whether you should keep your house in a divorce in Arizona is whether you have children. CIT Bank is a solid option if you’re looking for a high-interest savings account with no monthly fees. Additionally, a complex calculation is necessary to determine how stock options should be divided upon divorce, should they be deemed marital property. A judge will divide a divorcing couple's property and debts, unless the couple is able to reach a settlement agreement. If you have questions about s spouse hiding assets in an Arizona divorce case, you should seriously consider contacting the attorneys at Hildebrand Law, PC. The same is true for the Arizona divorce process. 1997), the Arizona Court of Appeals had to determine the impact of a divorce settlement agreement between Mrs. In the case of Leisure Lane it was determined the community contributed $39,741. Brown is here to help people with their. Exempted from this principle are any property or assets acquired before the marriage, by a will, or those the couple agree is separate property. This typically occurs when a spouse owns a home during a marriage but then adds his or her spouse’s name to the Deed to the home. Strange as it. Any stock options or restricted stock received after the date of separation is considered the separate property of the spouse that. THE MARRIAGE RELATIONSHIP. This capital gains exclusion can work against a single house owner who takes the house as part of the settlement, and then sells it later as a. As a volunteer lawyer she handled immigration, criminal and family law cases. Mr. A valid prenuptial or premarital agreement can override. If you and your spouse divorce, your 401 (k) could be divided up as part of the financial settlement. Koelsch, noted that property earned by either spouse’s employment is community property in Arizona. This can sometimes mean 55/45 or 60/40 or 40/60—every case is unique. App. C. Over 15 million employees have stock options and restricted stock plans, and this number is expected to balloon in the coming years. 317, 319, 732 P. We offer a comfortable, positive atmosphere that can help you avoid the stress and frustration of divorce litigation. Our Gilbert law office offers an array of practice areas within family law including divorce. Ct. 3d 599 (Ariz. Lee had to address the issues of equalization payments for the division of a business in a divorce in Arizona and whether a court can modify a business appraisal based upon a change in. High asset divorce cases can become extremely contentious when it comes to the division of property because the stakes are higher. Specifically: you or your spouse must have lived in Arizona at least 90 days before you file the Divorce Petition, or one of you is a member of the armed forces and has been stationed in Arizona at least 90 days before you file for divorce. App. One spouse, the plaintiff, files a complaint with the clerk of court to start a divorce. ARS § 25-318. Arizona residents going through a divorce and who have been carrying student loan debt may be wondering if their soon-to-be former spouses may be responsible for helping them to pay those loans since the division of property includes not only assets but debts. valuation of stock holdings and debt in an arizona divorce; loans before marriage in arizona; creditor lien on joint tenancy property in an arizona divorce; increase in value. CALCULATING A COMMUNITY LIEN ON AN APPRECIATING ASSET IN AN ARIZONA DIVORCE. Contact our experienced Mesa Divorce Lawyer and family law attorneys for a free consultation. Every parent or spouse with a divorce or child custody dispute pending should know a little about the appeal process in Arizona law. Lifgren addressed that issue. The court also ordered the parcel of land to be sold with each party receiving 50% of the sale of the land. If you have a question about divorce in Arizona, please call to speak to one of our experienced Arizona divorce attorneys at (480)305-8300. Arizona case law provides formulas for determining the percentage of community interest in the options under each scenario. Our family law firm has earned numerous awards such as US News and World Reports Best Arizona Family Law Firm, US News and World Report Best Divorce Attorneys, “Best of the Valley” by Arizona Foothills readers, and “Best Arizona Divorce Law Firms” by North Scottsdale Magazine. The same is true for your spouse’s 401 (k) if they have one. App. In many divorce cases, the couple’s credit scores get hit from a combination of things before and during a divorce. 272 (1977), the Arizona Supreme Court considered whether a military pension is a property right or an expectation for divorce purposes if the military spouse has not – at the time of the divorce – completed the. Discover residency requirements, grounds for dissolution, and what to…. The situation is treated as though they had the stock options all along. This is because stocks are considered to be property, and property is subject to division in a divorce. We're available Mon-Fri 5 a. Call us today at (480)305-8300 or reach out to us through our appointment scheduling form to schedule your personalized consultation and turn your Arizona community property case around today. 5130. . This means that a property settlement debt will not have priority status in a. The first is the “present cash value method”. GENERAL RULE OF PROPERTY DIVISION. To execute the separation of the 401 (k) plan, a QDRO must be drafted that will tell the 401 (k) plan administrator how to divide the retirement asset. Before diving deeper into how stock options are divided in a divorce case, an individual should have a basic understanding of how any type of property is distributed in a California marriage dissolution case. Separate property is owned by only one of the spouses, and thus is not subject to division during a divorce. Once again, start with the basic concept that a. One of the most complicated steps in any divorce proceeding is the division of assets. The Arizona Court of Appeals in the case of Bell-Kilbourn vs. Anderson, 256 P. Proving Separate Property in an AZ Divorce | Hildebrand Law, PC. Serve the papers. Choosing between term life and another policy type. 2d 208 (Ariz. Czarnecki in 1973. In order to be eligible to divorce in Arizona, you or your spouse must have lived in the state for a minimum of 90 days prior to filing court forms to dissolve your. The laws regarding asset division vary by state, and a couple is subject to the laws of the state that has jurisdiction over their divorce. Florida law requires an equitable, or fair, division of property between the spouses. You can consider selling your home, how close you are to Social Security (age 62), gathering evidence that keeps more money in your pocket, and making lifestyle changes that put more money back into your 401 (k). The Arizona Supreme Court noted two methods of determining that interest. HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE; HOW IS COMMUNITY PROPERTY DIVIDED IN ARIZONA;Adam Ramirez has been writing and editing about the law and legal issues for more than 20 years. A quarter of those vest every year for the next four years. In contrast, Tennessee requires only that the year-long desertion or absence be willful or malicious, with no reasonable cause. 1095 W. Therefore, the wife should be liable for half of the community debt omitted in the divorce decree. View his Divorce Magazine profile. § 25-324. Brette's Answer: If a spouse has reason to believe the other spouse might waste (sell, dispose of) marital assets it is considered reasonable to have them held for safekeeping by the attorney. Community property is also known as marital property. Our family law firm has earned numerous awards such as US News and World Reports Best Arizona Family Law Firm, US News and World Report Best Divorce Attorneys, “Best of the Valley” by Arizona Foothills. Call us today at (480)305-8300 or reach out. Whatever the property and wherever located, the family law judge determines who should get what and enters final orders, this is called the property settlement agreement. Options that are granted, are for the purpose of rewarding past performance, and have not vested at the time of the divorce are generally divided using the “time rule,” giving a party a progressively smaller percentage of options that vest farther from the divorce date. In the case of In Re Marriage of Inboden, 225 P. In 2001, the Massachusetts Supreme Judicial Court addressed. Exceptions may occur in situations. Judy and Norman Flower married in. However, any money earned or assets acquired before marriage by a spouse is the separate property of that spouse. In the case of In Re Marriage of Inboden, 225 P. 2d 59 (1973); Battiste v. It can also involve intangible assets like stock options, bonds, and legal rights. That doesn’t mean that the husband gets $210,000- it means that the wife. So, we wanted to provide answers to frequently asked questions about Arizona community property laws. Property and assets acquired before a marriage are generally considered separate property in most cases. At Bishop, Del Vecchio & Beeks Law Office, P. To do that. The Court of Appeals reviewed Arizona case law about how personal injury or disability recoveries should be treated in an Arizona divorce. In the case of an Incentive Stock Option, the taxpayer does not recognize income upon the granting or exercise of the option. Ct. For a complete list of Maricopa County Superior Court visit their website. The judge issued a property division order that did not address the lotto money. In such event, it is clear what party will receive the business. It noted that, under Arizona law, it is the superior court’s job in a divorce to divide all community property held by a couple. 1987). e. If you have questions about debts not included in a divorce decree in. A property settlement agreement becomes a legally binding part of the final judgment when your marriage is officially dissolved. Such property includes: Professional licenses; Stock options; Retirement plansPosted On May 25, 2022 In Divorce. Keep in mind that division of assets may be more complicated for certain types of companies, such as a service-based business. Most stock option vesting periods span about three to five. Adam Ramirez has been writing and editing about the law and legal issues for more than 20 years. Evans and Mrs. We can help you understand and get through the complex financial aspects of your divorce, including sophisticated property division issues involving stock options and other employee benefits. California is a “community property” state, which means that state law grants both spouses equal ownership over all marital assets in a divorce unless the couple signed a contract agreeing to different. The fundamental rule is that all property acquired by either spouse during the marriage (with narrow exceptions) is considered “marital property. The Court of Appeals, citing the case of Koelsch vs. The issue that you’re asking is how to distribute them as the stock has not yet been purchased and the right is not transferred to the non employee. Arizona Divorce Rules and Property Division. Many people just ignore them in divorce cases which can cost one party or the other a tremendous amount of money. Our family law firm has earned numerous awards such as US News and World Reports Best Arizona Family Law Firm, US News and World Report Best Divorce Attorneys, “Best of the Valley” by Arizona Foothills readers, and “Best Arizona Divorce Law Firms” by North Scottsdale Magazine. This is an essential step in dissolution proceedings. HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE; HOW IS COMMUNITY PROPERTY DIVIDED IN ARIZONA;Equitable Distribution. The property remains separate but the community has a lien for the amount invested. 3d 588 (Ariz. Arizona defines two categories of divorce: uncontested and contested. California is what is known as a community property state. We’ve successfully helped countless clients prepare a strong case and obtain favorable results. Our Arizona community. Florida judges consider several factors when dividing property, including: each spouse's income and earning potential.